Find out what the new VAT rates involve and how ERP software helps you efficiently manage legislative changes
The year 2025 brings significant changes in the area of VAT – Value Added Tax. Starting August 1, 2025, new regulations regarding VAT rates will come into force, including the increase of the standard rate from 19% to 21% and the replacement of the reduced rates of 5% and 9% with a single reduced rate of 11%. These changes are part of a broader legislative package aimed at simplifying and standardizing the VAT system.
Given that company activity is heavily influenced by the dynamics of the economic and legislative environment, businesses are required to find efficient solutions to properly manage the changes regarding the calculation and application of VAT rates in 2025, so as to ensure both fiscal compliance and the optimization of financial workflows.
In this context, more and more companies are choosing to implement specialized ERP solutions, which automate business processes, simplify VAT management, and enable rapid adaptation to the new legislative requirements.
Fiscal changes applicable from August 1, 2025: VAT and excise duties on the rise
Starting August 1, 2025, Romania’s VAT system will undergo significant changes targeting both VAT rates and excise duty levels. These changes will have a direct impact on consumer prices, commercial policies, and companies’ IT systems.
Increase of the standard VAT rate: from 19% to 21%
The VAT rate increased from 19% to 21% will apply to most goods and services that do not benefit from reduced rates. This includes mass-market products, general services such as telecommunications, utilities, transport, or consulting, as well as all deliveries of goods and supplies of services that are not exempt or classified under the new reduced rate of 11%.
Elimination of the reduced 5% and 9% rates
The new reduced rate of 11%
The reduced VAT rate will increase from 9% to 11% and will apply to a limited category of products and services considered essential, including: basic food products, medicines for human use, drinking water and sewage services, thermal energy, firewood, fertilizers and pesticides, as well as accommodation, restaurant, and catering services.
Excise duties increased by 10%
According to the law, excise duties will be increased by 10%, in two successive stages, the first entering into force on August 1, 2025, and the second on January 1, 2026.
This measure targets the main excisable products – alcohol, tobacco, and fuel. Price increases in these categories will generate indirect effects on costs in essential sectors of the economy, such as transport, energy, distribution, and deliveries. For companies, the new regulations will require:
- Recalculation of operational costs, to reflect the impact of increased excise duties
- Budget adjustments, through the reassessment of financial forecasts
- Updating fiscal parameters in ERP systems, especially in areas related to procurement, logistics, and inventory management
VAT rate increased from 9% to 21% for the delivery of new homes
Starting August 1, 2025, the VAT rate applied to the delivery of new homes will increase from 9% to 21%. This change will apply to all transactions involving the sale of new homes, having a direct impact on the final purchase price borne by buyers.
The measure is part of the new fiscal package and aims at increasing budget revenues, as well as aligning certain categories of goods and services with the standard VAT rate.
Changes regarding dividend and interest taxation
How do the new VAT rates affect a business’s activity?
Modernizing and integrating the IT infrastructure
Updating ERP systems and tax reporting platforms is essential to ensure compliance with the new ANAF regulations, especially regarding interaction with the Virtual Private Space (SPV), RO e-Invoice, RO e-Transport, and SAF-T. Implementing solutions that allow the automatic transmission of data in a standardized and compatible format minimizes the risk of errors, reduces delays, and increases operational efficiency. This enables the organization to benefit from simplified processes, greater transparency, and better control over financial and tax flows.
Automating processes related to VAT verification and reconciliation
Through the intelligent digitalization of internal control workflows, VAT verification and reconciliation processes become faster, more transparent, and easier to monitor. Automated systems not only flag discrepancies in real time, but also provide analytical tools to identify root causes and prevent them in the long term. This approach ensures predictive tax management and allows finance teams to focus on strategic activities.
Increasing the level of information and preparedness
One of the main obstacles to the correct application of VAT is the lack of a detailed understanding of the requirements and specific features of this system, especially in the case of companies managing complex transactions. In the case of international or intra-community transactions, complexity increases significantly, requiring the correlation and reconciliation of data from multiple sources — such as the SAF-T file, customs systems, and RO e-Invoice. Rigorous verification of this data becomes essential for eliminating discrepancies, reducing the risk of non-compliance, and ensuring complete and accurate tax reporting.
Essential steps for updating VAT rates
- 1. Creating the new VAT rates – the new VAT rate values are added in the management application, depending on the specifics of the legislation in force.
- 2. Updating products and services – the products and services in the item master data must be modified so that they are associated with the new VAT rates. This operation is usually carried out from the administration and configuration modules of the application.
- 3. Adjusting prices for inventory managed at selling price – for inventory managed at selling price, it is necessary to prepare an internal document for price changes, in accordance with legal requirements.
- 4. Updating the settings of cash registers and retail applications – in the case of sales made through fiscal receipts, it is mandatory to configure the new VAT rates in retail applications and cash registers, in order to ensure compliance with legislation and avoid issues when issuing fiscal receipts.
Read also: ERP systems classification – Select the best ERP software solutions for resource management
ERP software systems for VAT management and tax return automation
A high-performance ERP system enables the correct application of VAT rates, automatically calculates VAT values for sales and purchase invoices, and generates tax reports in accordance with the legislation in force.
Value Added Tax (VAT) applies to most commercial transactions, which makes VAT calculation and reporting functionalities indispensable for any ERP. Proper configuration of these processes guarantees data accuracy and compliance with legal deadlines.
The SeniorERP solution – an ERP system with rapid implementation – and SeniorXRP – an extended platform for managing complex businesses – are fully integrated with ANAF systems, ensuring an automated tax workflow.
Senior Software systems implicitly include all VAT rates provided by law, and in the event of legislative changes, updates are implemented quickly, so that transactions remain compliant.
In addition, ERP information systems offer bulk update functionalities for item details, allowing the simultaneous modification of the VAT rate for numerous products. In this way, companies can respond efficiently to economic or legislative changes.
As regards VAT-related tax returns, Senior Software platforms automate the entire process: the returns are generated, verified, and submitted to ANAF in just a few clicks. The intuitive interface ensures the correct retrieval of information, provides alerts and notifications to meet deadlines, and facilitates compliance with legal requirements.
Talk to a consultant and choose the ERP modules best suited to your business!
Senior Software’s ERP systems provide a wide range of integrated functionalities that successfully cover all business components, regardless of the company’s field of activity.